Financial Results for Q1 2013 CALGARY, ALBERTA and HONG KONG, CHINA--(Marketwired - May 30, 2013) - Grand Power Logistics Group Inc. ("Grand Power" or the "Corporation") (TSX VENTURE:GPW), a leading international logistics provider based in Hong Kong, today announced its consolidated financial results for the quarter ended March 31, 2013. All amounts are expressed in the US dollar (US$) except where noted.
Selected Q1 2013 Financial Highlights
| (in thousands except per share or % data) | March 31, 2013 | March 31, 2012 | Change |
| Revenue | $12,441 | $14,379 | -13.48% |
| Gross profits | $983 | $1,067 | -7.41% |
| Gross margins | 7.90% | 7.42% | +6.47% |
| Net income (loss) for the period | ($138) | $14.8 | -$153 |
| Net income (loss) (owners of Corporation) | ($134) | $22.1 | -$157 |
| Earnings (loss) per share | ($0.002) | $0.000 | -$0.002 |
| | Mar. 31, 2013 | Dec. 31, 2012 | Change |
| Total assets | $25,477 | $27,480 | -7.29% |
| Working capital | $3,128 | $3,324 | -5.90% |
| Total liabilities | $14,849 | $16,750 | -11.35% |
| Shareholders' Equity (owners of Corporation) | $10,492 | $10,590 | -0.01% |
"The company experienced a 13.48% decrease in revenue in the first quarter of 2013 compared to the first quarter of 2012 due to the general weakness in the logistic sector in the first quarter. Consequently, there was a slight decrease in gross profit of $83,913. Nevertheless, the gross profit margin in the first quarter increased to 7.90% compared to 7.42% in 2012. In the first quarter, the company experienced a net loss of $137,693 compared to a net profit of $14,817 in the first quarter of 2012," said Mr. Ricky Chiu, President and CEO of Grand Power.
Q1 2013 Financial Results
Sales revenue for the three months ended March 31, 2013 decreased by $1,937,870 (13.48%) to $12,440,747 from $14,378,617 in 2012. The decrease in sales revenue is primarily due to the overall weakness in the air freight sector during the first quarter.
Gross profit for the three months ended March 31, 2013 decreased by 7.86% to $983,082 compared to $1,066,995 in 2012, and gross profit margin increased to 7.90% compared to 7.41% for 2012. The decrease in gross profit is primarily due to the decrease in revenue.
The net loss for the three months ended March 31, 2013 was $137,693 compared to a net profit of $14,817 in 2012. The net loss attributable to the owners of the Corporation for the three months ended March 31, 2013 was $134,452 compared to a net profit of $22,064 in 2012. Operating expenses for the three months ended March 31, 2013 increased by 12.41% to $1,238,879 compared to $1,102,087 in 2012.
The Corporation generated a cash flow from its operations for the three months ended March 31, 2013 of $1,258,641 compared to a cash flow of $1,243,656 in 2012.
Tonnage shipped decreased by 734 tonnes (11.2%) to 5,830 tonnes for the three months ended March 31, 2013 compared to 6,564 tonnes in 2012. The increase was primarily due to the continual growth of the air freight business initiated by the Corporation's recently expanded oversea agent network.
For the three months ended March 31, 2013, the Corporation generated $11,005,900 (88.5%) of its revenue from its traditional co-loading air freight business, $672,181 (5.4%) of revenue from its direct sales air freight business and $762,666 (6.1%) of revenue from its ocean freight business. During the corresponding period of 2012, the Corporation generated $12,041,347 (83.7%) of its revenue from its traditional co-loading air freight business, $1,522,747 (10.6%) of revenue from its direct sales air freight business and $814,523 (5.7%) of revenue from its ocean freight business.
Hong Kong is still the Corporation's largest operating centre during the first quarter of 2013, generating $10,752,189 (86.4%) of the Corporation's total revenue whereas China and other regions accounted for $1,379,808 (11.1%) and $308,750 (2.5%), respectively. For the corresponding period in 2012, Hong Kong, China and other regions accounted for $9,304,528 (64.7%), $4,655,558 (32.4%), and $418,532 (2.9%), respectively, of the Corporation's total revenue.